BLBG: Copper Advances in London as Chinese Manufacturing Accelerates
By Chris Fournier
Nov. 4 (Bloomberg) -- Canada’s currency appreciated for a third day, the longest winning streak in three weeks, as stocks, gold and oil rallied before a decision on interest rates by the Federal Reserve.
“It seems to be a function of the risk-on trade,” said Stewart Hall, an economist in Toronto at HSBC Holdings Plc. “Commodity markets are lining up against the weaker U.S. dollar. Equities are doing fairly well into the European session, with North American futures in positive territory. It’s relatively conducive to Canadian dollar strength.”
The Canadian dollar posted two weekly declines after Oct. 15, when it came within three cents of parity with its U.S. counterpart. The currencies last traded on a one-for-one basis in July 2008, when crude oil reached a record C$147.27 a barrel.
Canada’s currency climbed 0.4 percent to C$1.0621 per U.S. dollar at 8:18 a.m. in Toronto, from C$1.0661 yesterday. It reached C$1.0870 on Nov. 2, the weakest level in a month. One Canadian dollar buys 94.15 U.S. cents.
The Fed, European Central Bank and Bank of England are scheduled to release monetary-policy decisions today and tomorrow. The Federal Open Market Committee will likely say today it will keep the benchmark interest rate unchanged at a range of zero to 0.25 percent, according to all 96 economists in a Bloomberg survey.
Canadian employers added 10,000 jobs last month, after a gain of 30,600 in September, according to the median forecast of 22 economists in a Bloomberg News survey. Statistics Canada is due to report the data Nov. 6.
Bank of Canada
Bank of Canada Deputy Governor John Murray is scheduled to speak today in Prince George, British Columbia, about financial well being. Murray’s remarks will be available on the central bank’s Web site at 10:50 a.m. New York time.
The MSCI World, a benchmark index for 23 developed markets, rose 0.6 percent, and futures on the Standard & Poor’s 500 Index gained 0.6 percent.
December gold futures climbed to a record $1,096.20 an ounce. Crude oil for December delivery gained as much as 1.1 percent to $80.48 a barrel on the New York Mercantile Exchange. Raw materials including gold and crude account for more than half of Canada’s export revenue.
